1:40: Former Detroit Mayor Kwame Kilpatrick testified he doesn't know about his wife's finances
(again). "I have my account, and I deal with my account," he told
prosecutor Athina Siringas. "I give my wife money, and I don't know
where that goes.

AP file photoKwame Kilpatrick I don't keep track of her accounts."

2:05:
Kilpatrick invoked his 5th Amendment rights and refused to answer a
question about who loaned him money to make a $22,000 payment to the
city on March 13. "I borrowed money from some people to pay it," he
told Siringas. But when she asked who loaned him the money, he said,
"I'm gonna take the 5th."

2:20: During an argument over
bank account records being admitted as evidence, Siringas said the
documents show Kilpatrick spent more than $750,000. She said the
documents show that while he's seeking to cut his restitution payments,
"he in fact is spending money like he is a multi-millionaire."

3:03:
Law clerk Thomas Nafso testified he put together a document showing the
total amount deposited into five accounts in the name of Kwame and
Carlita Kilpatrick. In sum, the document showed $770,997 was deposited
into the accounts and $750,591 was spent. It's not clear from his
testimony, but it appears those figures are from the time Kilpatrick
made his first restitution in Oct. 2008.

3:23:
Kilpatrick's lawyer, Michael Alan Schwartz, is hammering Nafso over
details of how he created the document. That said, he's using a really
slow, boring hammer. He even asked him where he went to college
(Oakland University and finishing law degree at Detroit-Mercy). It
seems Schwartz is trying to call into question the validity of the
document, but he hasn't been too successful so far.

3:37:
Or not. Judge Groner just threw out three documents, including the one
Nafso testified about. In regards to the first two documents, Groner
said prosecutors misled the public in last month's hearing that
Kilpatrick had "more than a million dollars available to him" by not
considering account transfers. The new document supposedly took into
account those transfers, but Groner said such summaries were
unnecessary. "I don't need those documents. I've got the bank
records," he said.

3:56: Daniel Follis, an attorney for
Compuware, testified that company CEO Peter Karmanos asked him to draft
a loan agreement for Kilpatrick before he entered jail in October of
2008. Follis said Karmanos and four other businessmen originally
collaborated to loan Kilpatrick $300,000 to help "bridge him from
public service to the private sector." On a draft of the agreement,
Follis scribbled a note asking whether
there could be a gift tax issue if the loan was never repaid. His
answer, also in the margin? Yes.

Only four men eventually
loaned money to Kilpatrick: Roger Penske, Jim Nicholson, Dan Gilbert
and Karmanos. Follis said the would-be fifth lender was John Rakolta
of Walbridge Aldinger.

4:06: Follis confirmed he called a
fellow lawyer to discuss what might happen if Kilpatrick never repaid
the loan, but said he was not prompted to do so by Karmanos.

4:27:
Follis said Penski, Nicholson, Gilbert and Karmanos didn't sign the
revised loan agreement for $240,000 once Rakolta dropped out, but
rather instructed him to use their previous signatures on the new
agreement. Likewise, Follis said Kilpatrick actually signed the
$300,000 agreement in February and that signature was attached to the
revised agreement.

4:42: Follis testified promissory
notes were drafted from the beginning but that Kilpatrick didn't sign
the notes until he'd already received the $240,000. In a leading
question that Schwartz successfully objected, Siringas characterized
the notes as "trying to make this agreement look like a loan."

4:46: Groner adjourned the hearing, which he said will resume at 1:30 p.m. tomorrow.